How long has it been since you heard someone complain, "Everything is
made in China. Greedy businessmen are sending all our jobs to China.
That's why there's so much unemployment." Five minutes? Ten minutes?
The facts are that Chinese goods account for 2.7 percent of U.S. personal consumption expenditures.
Like the Jews in the Third Reich, the Chinese have become the whipping
boy for all our problems. It helps to turn our attention away from a
Senate that hasn't passed a budget in three years and can't even tell
American business what payroll taxes will be two weeks from now.
Wednesday, December 21, 2011
The Customer Will Just Have To . . . .
In response to Michele Obama, the LA Unified School District got rid of chocolate and strawberry milk, chicken nuggets, corn dogs, nachos and other food high in fat, sugar and sodium. Instead, district chefs concocted such healthful alternatives as vegetarian curries and tamales, quinoa salads and pad Thai noodles. According to the LA Times, the program "has been a flop". Massive amounts of food are going to waste, and there is a thriving black market in food that the students actually want to eat.
All of this is quite predictable -- at least to anyone who has ever run a business (which excludes Michele and her cohorts who always know what's best for you). I learned long ago that whenever you hear someone utter the words "the customer will just have to learn to _______" there is a disaster impending. Of course, government never thinks of the populace as customers to be served, but as sheep to be herded. Which explains why so many government programs are "flops".
Didn't this country learn anything from Prohibition?
All of this is quite predictable -- at least to anyone who has ever run a business (which excludes Michele and her cohorts who always know what's best for you). I learned long ago that whenever you hear someone utter the words "the customer will just have to learn to _______" there is a disaster impending. Of course, government never thinks of the populace as customers to be served, but as sheep to be herded. Which explains why so many government programs are "flops".
Didn't this country learn anything from Prohibition?
Monday, December 19, 2011
Economic Ignorance at the Times
This from today's NY Times:
More recently, Bain helped lead the private equity purchase of Clear Channel Communications, the nation’s largest radio station operator, which resulted in the loss of 2,500 jobs.
Here is a prime example of how economic ignorance passes for journalism. 2500 people may have lost their jobs at Clear Channel, but this did not result in 2500 fewer people being employed. The resources that were tied up employing people in an inefficiently run business were freed up to be employed in other businesses -- including some of Bain's other investments like Staples, Gymboree, Guitar Center and others. That's what capital markets do. They shift resources from less productive uses to more productive uses. That's how the economy grows and produces more jobs in total.
Next up: The Times writes a scathing piece criticizing itself for installing computerized type setting, which resulted in the loss of thousands of jobs at their printing plants.
More recently, Bain helped lead the private equity purchase of Clear Channel Communications, the nation’s largest radio station operator, which resulted in the loss of 2,500 jobs.
Here is a prime example of how economic ignorance passes for journalism. 2500 people may have lost their jobs at Clear Channel, but this did not result in 2500 fewer people being employed. The resources that were tied up employing people in an inefficiently run business were freed up to be employed in other businesses -- including some of Bain's other investments like Staples, Gymboree, Guitar Center and others. That's what capital markets do. They shift resources from less productive uses to more productive uses. That's how the economy grows and produces more jobs in total.
Next up: The Times writes a scathing piece criticizing itself for installing computerized type setting, which resulted in the loss of thousands of jobs at their printing plants.
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